The Non-Compete Agreement For Sales Representative is essential for businesses operating in Indonesia who need to protect their customer relationships, confidential information, and market position. This document is particularly crucial when sales representatives have access to sensitive pricing strategies, customer data, or proprietary sales methods. The agreement must be carefully drafted to comply with Indonesian labor laws, including the Law No. 13 of 2003 on Manpower and relevant constitutional provisions, ensuring restrictions are reasonable in duration and geographic scope. It's typically implemented during the hiring process or as part of employment contract revisions, particularly for roles involving significant customer contact or access to trade secrets.
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1. Parties: Identifies the company and the sales representative, including their full legal names, addresses, and any relevant registration numbers
2. Background: Explains the context of the agreement, including the sales representative's role and access to confidential information
3. Definitions: Defines key terms used throughout the agreement, including 'Confidential Information', 'Competing Business', 'Territory', and 'Restricted Period'
4. Scope of Employment: Outlines the sales representative's role, responsibilities, and territory during employment
5. Non-Compete Obligations: Details the specific restrictions on competing activities after employment termination, including duration and geographic scope
6. Non-Solicitation of Customers: Prohibits the solicitation of company customers and prospects during the restricted period
7. Non-Solicitation of Employees: Restricts the recruitment of company employees during the restricted period
8. Confidentiality Obligations: Specifies the handling and protection of confidential information during and after employment
9. Duration and Territory: Clearly states the time period and geographic area where restrictions apply
10. Consideration: Specifies any compensation or benefits provided in exchange for the non-compete obligations
11. Acknowledgments: Contains employee's acknowledgment of the reasonableness of restrictions and receipt of consideration
12. Remedies: Outlines available remedies and enforcement mechanisms for breach of agreement
13. General Provisions: Contains standard clauses including governing law, severability, and entire agreement provisions
1. Garden Leave: Optional provision for paid leave during notice period to protect company interests, used for senior sales roles
2. Return of Company Property: Detailed provisions for returning company assets, needed when sales representatives handle significant company property
3. Post-Employment Cooperation: Provisions for assistance in transition of customer relationships, used for representatives managing key accounts
4. Training Cost Recovery: Provisions for recovering training investments, applicable when company provides substantial specialized training
5. Commission Tail: Provisions regarding post-termination commission payments, needed when dealing with long sales cycles
6. Mutual Non-Disparagement: Provisions preventing both parties from making negative statements, useful in high-profile sales positions
1. Schedule A - Territory Definition: Detailed description of the geographic territory covered by the non-compete restrictions
2. Schedule B - Customer List: List of specific customers and prospects covered by non-solicitation provisions
3. Schedule C - Compensation Details: Specific details of any compensation provided in consideration for the non-compete obligations
4. Appendix 1 - Confidential Information: Detailed categorization of confidential information specific to the sales role
5. Appendix 2 - Competing Businesses: List of specific competitors or types of competing businesses covered by the restriction
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